Axfood Ab · OMXSTO:AXFO
Axfood Ab — Q2 2014 Earnings Presentation
19 slides from Axfood Ab's earnings presentation, June 2014
Slide 1: Axfood April - June, 2014
Axfood April - June, 2014 Anders Strålman CEO
Slide 2: Axfood – strong earnings
Axfood – strong earnings • Best second quarter result ever – SEK 376 m (326), +15.3% • Stable sales – SEK 9,804 m (9,557), +2.6% • Weaker food retail market and low food price inflation
Slide 3: Willys – good profitability
Willys – good profitability • Good earnings – SEK 221 m (211), +4.7% • Stable sales affected by bad weather conditions – SEK 5,374 m (5,174), +3.9% • Focus on developing the customer programme and stronger offerings
Slide 4: Hemköp – favorable growth in like-for-like stores
Hemköp – favorable growth in like-for-like stores • Total sales affected by fewer stores – SEK 1,364 m (1,392), -2.0% • Continued good growth in like-for-like stores – +2.6 % (0.2) • Increased earnings – SEK 47 m (44), +6.8% • Modernization of stores continued • Attractive customer offerings
Slide 5: Axfood Närlivs – improved result
Axfood Närlivs – improved result • Improved result – SEK 47 m (42), +11.9% • Stable sales – SEK 1,749 (1,728), +1.2% • Very good development in cash-and-carry stores • Food retail and convenience sector affected by bad weather conditions
Slide 6: Dagab – strengthened profitability
Dagab – strengthened profitability • Strong improvement of the result – SEK 48 m (12) – Increased efficiency – Last year was affected by implementation of the new business system • Focus on fine-tuning the system
Slide 7: Market outlook
Market outlook • Continued optimism among Swedish households • Stable growth in food retail industry • Low food price inflation – 1-2 % expected for 2014 7
Slide 8: Strategy for profitable growth
Strategy for profitable growth • Develop the various concepts – Modernize both Willys and Hemköp stores – Attractive customer offerings • Development of customer programmes and business system • High level of private label share 8
Slide 9: Axfood's goal 2014
Axfood’s goal 2014 Exceed the level of profit in 2013
Slide 10: Financial Overview
Financial Overview Karin Hygrell-Jonsson CFO
Slide 11: Axfood April-June 2014
Axfood April-June 2014 • Strong result and stable sales growth Net sales, SEK m Operating margin, % Key ratios Q2 Q2 SEK m 2014 2013 Change Net sales 9,804 9,557 2.6% 9 804 9 557 9 465 9 550 8 946 Change in like-for-like sales, 1.5% 1.3% 0.2 % Operating profit 376 326 15.3% 4.0 3.4 3.6 3.8 2.7 Opera
Slide 12: Willys April-June 2014
Willys April-June 2014 • Good earnings and stable sales Net sales, SEK m Operating margin, % Key ratios Q2 Q2 5 174 5 209 5 374 5 092 4 941 SEK m 2014 2013 Change Net sales 5,374 5,174 3.9% Change in like-for-like sales, 1.2% 1.6% -0.4 4.1 4.3 % 4.0 4,0 3.4 Operating profit 221 211 4.7% Operating ma
Slide 13: Hemköp April-June 2014
Hemköp April-June 2014 • Continued good sales growth in like-for-like stores • Improved result Net sales, SEK m Operating margin, % Key ratios Q2 Q2 1 439 1 392 1 355 1 364 1 341 SEK m 2014 2013 Change Net sales 1,364 1,392 -2.0% Change in like-for-like sales, 2.6% 0.2% 2,4 %, Group-owned 3.2 3.1 3.
Slide 14: Axfood Närlivs April-June 2014
Axfood Närlivs April-June 2014 • Increased earnings – Very good performance in cash-and-carry business Net sales, SEK m Operating margin, % Key ratios Q2 Q2 SEK m 2014 2013 Change 1 728 1 738 1 749 1 596 Net sales 1,749 1,728 1.2% 1 421 3.0 2.7 Distributed sales 1,634 1,609 1.6% 2.4 2.1 Operating pr
Slide 15: Dagab April-June 2014
Dagab April-June 2014 • Strengthened result – Last years result affected by implementation of new business system Net sales, SEK m Operating margin, % Key ratios Q2 Q2 6 400 6 569 6 681 SEK m 2014 2013 Change 6 346 6 109 Net sales 6,681 6,400 4.4% Distributed sales 4,603 4,418 4.2% 0.6 0.7 0.5 Opera
Slide 16: Other April-June 2014
Other April-June 2014 • Net sales: SEK 1,355 m (1,329), +2.0% • Operating profit: SEK 13 m (17) – Amortization of new business system with SEK 19 m (17)
Slide 17: Key ratios January-June 2014
Key ratios January-June 2014 • Balance sheet, total: SEK 8,880 m (8,831) • Cash flow operating activity: SEK 719 m (828) • Capex: SEK 303 m (398) – Investment plan 2014: SEK 700-800 m Capital expenditure SEK m 1 000 800 600 400 200 0 -09 -10 -11 -12 -13 17
Slide 18: Financial targets & dividend policy
Financial targets & dividend policy • Axfood’s goal for 2014 is to exceed the level of profit in 2013 • Equity ratio of at least 25% • Shareholder dividend of at least 50% of profit for the year after tax • Long term target for an operating margin of 4% 18
Slide 19: Summary
Summary • Strong result and stable sales growth 19